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Economy, Travel

Iran Airport Traffic Down 10% - September 2018

More than 27.91 million passengers and around 284,895 tons of cargos were transported during March 21-Sept. 22, indicating a 13% and 11% decrease respectively year-on-year
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Iran Airports Company registered 230,136 takeoffs and landings during the first half of the current Iranian year (March 21-Sept. 22), which show a 10% decline compared with the similar period of last year.

More than 27.91 million passengers and around 284,895 tons of cargos were transported during the period, indicating a 13% and 11% decrease respectively year-on-year, IAC's latest data published on its website show.

As for domestic flights, 189,103 takeoffs and landings were registered, down 9% compared with the similar period of last year. More than 21.75 million passengers were transported domestically, indicating a 13% decrease YOY.

On the international front, 41,033 takeoffs and landings were registered, down by 12% YOY. A total of over 6.16 million passengers were transported to and from overseas destinations, posting an 11% decrease YOY.

Tehran’s Mehrabad International Airport was the busiest during the period, with 65,973 takeoffs and landings.

More than 7.66 million passengers were handled at this airport.

Mashhad International Airport was the second busiest airport during the one-month period with 34,834 takeoffs and landings. It transported more than 5.04 million passengers.

Imam Khomeini International Airport registered 27,569 takeoffs and landings, while transporting 4.33 million passengers, ranking third on the list of Iran’s busiest airports.

Iran Airports Company is an arm of the Ministry of Roads and Urban Development, which manages 54 airports across the country.

> Increased Ticket Prices 

The decline in the number of passengers can be attributed to the currency crisis of the past few months, which started after US President Donald Trump pulled out of Iran’s nuclear deal in May and structural economic problems exacerbated.

The steep psychological effect of yet another round of US sanctions—this time promised to be more stringent than ever by US officials—has sent Iran's currency into a tailspin. The rial lost close to 75% of its value and reached an all-time low of 190,000 against the US dollar in September.

Since a major portion of the airlines' expenses, even for local flights, are in foreign currencies, aviation companies had to jack up their prices considerably in recent months to compensate. As such, prices were no longer affordable, especially for middle-income population as their purchasing power has significantly depleted.

“Air travel is bound to be removed from many Iranian households’ so-called basket of consumer goods and services,” Maqsoud Asadi-Samani, secretary of the Association of Iranian Airlines, said.

Referring to the 20% growth in passenger traffic following the deregulation of airfares in late 2015, Asadi-Samani said the new state of things will undo the gains made by the aviation industry in the past three years and will lead to a drastic decline in the number of air travels, particularly those on international routes. 

However, Iran's currency market has lost some of its fluctuating fervor during the past few days, leading to hopes that airplane operating companies will also bring their skyrocketing prices down as some already have.

> European Airlines Pull Out 

Another contributing factor to the decline in flights to and from Iran can be traced back to the pullout of major international airlines from the country following the reinstatement of US sanctions against Tehran.

Air France and British Airways have already halted flights to Tehran, citing low profitability as the US reimposes sanctions on Iran.

Dutch airline KLM-part of the same group as Air France-has also suspended Tehran flights due to negative results and weak financial outlook.

This was not the case with Qatar's flag carrier though. US sanctions on Iran will not impact Qatar Airways' flights to the Islamic Republic, the airline's CEO Akbar al-Baker said last week.

Speaking at a high-profile business conference in the Qatari capital Doha, Baker said services to Iran would continue despite a tightening economic and political squeeze on Iran by Washington, AFP reported.

"Aviation is not a sanctioned industry, Qatar Airways will continue to operate into the cities we are currently operating in Iran," he said.

"Our flights to Iran will not be affected."

Qatar Airways' Iran destinations include Mashhad and Shiraz, while the airline operates daily flights to Tehran, according to its website.

The introduction of a nearly threefold departure tax by the government is said to be another accomplice in lowering the number of air passengers during the first half of the current fiscal.

The new departure tax ratified for the current year saw an almost threefold rise compared to last year’s fee to reach 2.2 million rials ($14.86).

The new fee is to rise 50% for the second trip and 100% for the third and subsequent visits.